CBN data: Govt credit surges 63% to ₦39.4T, crowds out private sector lending
Credit to the Nigerian government jumped 63% year-on-year to ₦39.40 trillion in September 2026, with a sharp ₦6.36 trillion monthly increase from August's ₦33.04 trillion, according to CBN Money and Credit Statistics. This 19.26% monthly spike reverses three consecutive months of decline where government credit fell from ₦36.98 trillion in June.
Private sector credit moved in the opposite direction, dipping 0.64% month-on-month to ₦83.93 trillion, though it remains 15.7% higher than September 2025. Net domestic credit rose 4.96% to ₦123.34 trillion, driven largely by the government surge. Over the past year, government borrowing accounted for 57% of the ₦26.65 trillion expansion in net domestic credit, while private sector growth contributed 43%.
Broad money supply (M3) expanded 24.5% annually to ₦146.60 trillion, reflecting increased liquidity in the system. However, the composition matters: a growing share of available credit now finances government activities while businesses face elevated borrowing costs and tighter conditions.
For policymakers, the challenge is ensuring liquidity growth supports productive economic activity rather than simply funding fiscal deficits. For businesses, access to affordable credit remains the key concern as government demand for financing expands.
With government borrowing crowding out private credit, will your business delay expansion plans, seek alternative funding sources, or push for policy changes that rebalance credit allocation?